Blockchain network security protects your data and network against unauthorized access and intrusions. We will discuss firewalls, VPNs, and other tools in blockchain network security.
Data in blockchain is safeguarded using a variety of tools in blockchain network security, which, amongst others, includes Firewalls and VPNs.
Before we explain these tools in detail, let us get a foreknowledge of what network security is all about.
What is Network Security?
Network security refers to all the actions required to safeguard a computer network’s integrity and data. Network security is vital because it protects sensitive data from cyber threats and keeps the network operational and trustworthy.
Multiple security solutions are used in successful network security plans to protect users and companies from malware and cyber attacks such as distributed denial of service.
A network comprises linked equipment, such as computers, servers, and wireless networks. Many of these gadgets are vulnerable to attackers.
On a network or as software as a service, network security entails employing various software and hardware solutions.
As networks get increasingly complicated and organizations rely more on their networks and data to conduct business, security becomes more vital.
Security systems must evolve as threat actors develop new attack tactics on these increasingly complex networks.
Security is frequently described as everyone’s duty, regardless of the precise method or organizational security policy, because every user on the network represents a potential vulnerability in that network.
How Network Security Works
Network security is guaranteed through the use of both hardware and software solutions. The primary purpose of network security is to prevent unwanted access to or between network components.
A security official or team develops plans and procedures to keep a company’s network secure and compliant with security standards and regulations. Everyone on the network must follow these security policies.
Every location in the network where an authorized user can access data is also a point where data can be compromised, either by a hostile actor or by user negligence or mistakes.
Now, let us get acquainted with blockchain network security.
What is Blockchain Network Security?
Blockchain network security is a comprehensive risk management system that includes assurance services, cybersecurity standards, and best practices to reduce the risk of fraud and cyber-attacks.
Because blockchain data structures are founded on consensus, cryptography, and decentralization principles, they have intrinsic security properties. Each new information block connects to all preceding blocks, so tampering is practically impossible.
Furthermore, a consensus process (approved users) validates and agrees on all transactions in a block, ensuring that each transaction is truthful and correct. As a result, there is no single point of failure, and a user cannot modify transaction records. With blockchain’s many advantages and benefits, it is not a perfect model.
Next, we will look at some challenges faced by blockchain network security.
Blockchain Network Security Challenges
Blockchain has its challenges. Cybercriminals can exploit blockchain weaknesses and do significant damage. Here are four major challenges faced by blockchain network security.
- Routing attacks
- 51% attacks
- Sybil attacks
- Phishing attacks
Routing attacks
Blockchains rely on massive data transfers that occur in real time. Hackers with ingenuity can intercept data on its way to ISPs (Internet Service Providers). Unfortunately, blockchain users are unaware of any issues.
51% attacks
Mining on large-scale public blockchains requires vast computational power.
A group of unethical miners, on the other hand, can seize control of a ledger if they can pool enough resources to obtain more than 50% of a blockchain network’s mining power. Private blockchains, on the other hand, are not vulnerable to 51% attacks.
Sybil attacks
Sybil’s attacks, named after the book about multiple personality disorders, flood the target network with an excessive number of bogus identities, crashing the system.
Phishing attacks
This old hacker trick also works with blockchain. Phishing is a scam in which cybercriminals send phony but convincing-looking emails to wallet owners to obtain their credentials.
Given the numerous attacks launched by hackers to breach blockchain’s network security and compromise data, several tools have been utilized to safeguard data on blockchain.
Blockchain Network Security Tools
Blockchain security tools are designed to protect data stored on a specific blockchain and can be utilized with several data storage platforms. These technologies assess risks, analyze a blockchain ecosystem, and detect data, apps, and digital asset threats.
These technologies are widely used to protect smart contracts and tokenized assets and detect fraudulent transactions and blockchain security risks.
Businesses also utilize these technologies to ensure that data is protected from potential threats and stored in line with privacy and data protection regulations.
Some of blockchain’s network security tools are:
- Firewalls
- VPNs
- Endpoint Security
- Data Loss Prevention
- Anti-malware Software
Firewalls
Firewalls are blockchain network security tools that monitor and filter incoming and outgoing network traffic following an organization’s security policy.
It is a barrier between a private internal network and the public Internet. Fencing your property protects and keeps trespassers out; firewalls secure a computer network.
Firewalls are network security solutions that guard against unauthorized network access. A hardware or software unit filters incoming and outgoing traffic within a private network based on criteria to detect and prevent cyberattacks.
Firewalls are utilized in both business and home settings. They are an essential part of network security. Most operating systems provide a simple firewall. Using a third-party firewall application, on the other hand, gives superior protection.
How Does Firewalls Work?
As previously stated, firewalls filter network traffic within a private network. Based on a set of rules, it determines which traffic should be allowed or prohibited.
Consider the firewall a gatekeeper at your computer’s entrance point, allowing only trustworthy sources (or IP addresses) to enter your network.
A firewall only accepts incoming traffic that has been configured to receive it. It distinguishes between legitimate and malicious traffic and allows or blocks particular data packets based on predefined security rules.
These rules are based on several factors of the packet data, such as its source, destination, content, and so on. To avoid cyberattacks, they block traffic from suspected sources.
VPNs
VPN stands for “Virtual Private Network” and refers to establishing a secure network connection when using public networks. VPNs encrypt your internet traffic and conceal your identity online.
This makes it more difficult for third parties to follow your internet activities and steal information.
How Do VPNs Work?
A VPN redirects an internet connection from a device to a private service rather than the user’s conventional internet service provider (ISP). By masking the user’s IP address, the VPN is an intermediary between the user coming online and connecting to the Internet.
A VPN establishes a secret, encrypted tunnel through which a user’s device can connect to the Internet while concealing their personal information, location, and other data.
All network traffic is routed through a secure VPN connection. This implies that any data sent to the Internet is routed through the VPN rather than through the user’s PC.
When people connect to the Internet using a VPN, their computer sends information to websites over the encrypted connection established by the VPN.
The VPN then relays the request to the specified website and returns the result to the connection.
Endpoint Security
Endpoint security is securing devices against harmful threats and cyberattacks, such as workstations, servers, and other devices that can accept a security client.
Endpoint security software allows businesses to safeguard employees’ work devices and servers on a network or in the cloud against cyber threats.
Cybersecurity risks from increasingly skilled cyber criminals are flooding the modern business scene. Every 39 seconds, hackers conduct a cyberattack for a daily total of 2,244 strikes.
Given the vast number of endpoints used to connect to networks, they are one of the most prevalent targets. According to Strategy Analytics insight, there were 22 billion linked devices in 2018, with 38.6 billion devices expected by 2025 and 50 billion by 2030.
As a result, according to Verizon’s threat report, malware was installed on endpoints in up to 30% of data breaches.
Every endpoint connecting to the corporate network is a possible entry point for cyber thieves.
As a result, every device an employee uses to connect to any corporate system or resource has the potential to become the preferred channel for hacking into an organization.
Malware can use these devices to leak or steal sensitive data from the organization.
How Endpoint Security Works
The primary purpose of any endpoint security tool is to secure data and workflows connected with all devices that relate to the corporate network.
It accomplishes this by inspecting files entering the network and comparing them to an ever-expanding database of threat information stored in the cloud.
The endpoint security tool offers system administrators a centralized management panel installed on a network or server that allows them to control the security of any devices that connect to it.
Client software is then either remotely or directly deployed to each endpoint. When the endpoint is configured, the program updates it as needed, authenticates login attempts made from it, and administers corporate policies.
Data Loss Prevention
Data loss prevention is a security tool that identifies and assists in avoiding dangerous or inappropriate data exchange, transfer, or use. It can help your company monitor and protect sensitive data across on-premises systems, cloud-based sites, and endpoint devices.
It also assists you in meeting regulatory requirements such as the Health Insurance Portability and Accountability Act (HIPAA) and the General Data Protection Regulation (GDPR).
How Data Loss Prevention Tool Works
Data loss prevention uses a combination of people, procedures, and technology to detect and prevent sensitive data leakage.
A DLP solution detects suspicious behaviors by comparing material to your organization’s DLP policy, which describes how your organization classifies, shares, and secures data while preventing unauthorized people from accessing it.
Anti-malware Software
Anti-malware software is tool you voluntarily install on your computer to protect it from malware penetration and infection.
Anti-malware solutions can accomplish this in three ways: they identify malware on your computer, safely remove it, and repair any harm caused by the infection.
How Does Anti-malware Software Work?
Many anti-malware tools are designed to scan a computer system for dangerous software using a set of archived malware signatures (blacklist).
The anti-malware tool checks the discovered suspicious file to the blacklisted malware definition and labels it as malware if the functions are the same.
Most classic anti-malware tools employ this strategy. It successfully identifies known malware; however, the database must be updated regularly to maintain protection from the most recent malware and threats.
Final Thoughts
Blockchain Network security is fundamentally the ability to secure your company and its customers. That includes understanding the threats and solutions and how to apply that knowledge to develop a comprehensive network security strategy.
After all, data is the lifeblood of your company, and vampires don’t require an invitation.
So why not let some light in? With good blockchain network security, you can shed light on the entire spectrum of blockchain network security threats, keeping your data, business, and customers safe and secure.